Biogen Idec Inc. (BIIB), Incyte Corporation (INCY): Should Novartis AG (ADR) (NVS) Shareholders Be Worried About This?

What Gilenya should be most concerned about is newly approved relapsing MS drug Tecfidera from Biogen Idec Inc. (NASDAQ:BIIB). A twice-daily pill, Tecfidera reduced relapse rates in clinical trials by 49% compared to the placebo and reduced new or expanding lesions by 71% to 99% depending on the trial. More importantly, the safety profile of Biogen Idec Inc. (NASDAQ:BIIB)’s Tecfidera is much improved with a decrease in white blood cell counts, flushing, and stomach problems being the most common adverse effects. By contrast, Gilenya can lower a patient’s heart rate to the point where it can, in rare cases, cause cardiovascular problems.

Gilenya sales have been strong outside the U.S. and should remain so as long as Tecfidera isn’t approved in many markets abroad. But, the threat of improving safety profiles for relapsing-MS drugs clearly has to be the biggest concern on the minds of Novartis shareholders as it relates to Gilenya. Thankfully, Novartis has a deep product pipeline, so one drug doesn’t make or break the company, but it nonetheless is a blockbuster worth keeping an eye on at $1.2 billion in annual sales.

The article Should Novartis Shareholders Be Worried About This? originally appeared on Fool.com and is written by Sean Williams.

Fool contributor Sean Williams has no material interest in any companies mentioned in this article. You can follow him on CAPS under the screen name TMFUltraLong, track every pick he makes under the screen name TrackUltraLong, and check him out on Twitter, where he goes by the handle @TMFUltraLong.

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